The latest propaganda from Jack M. I am suprised they don't drop this stuff from airplanes and play loud music as we read it. Who really knows what is going on.
No one really knows whats happening, until it actually happens. Unfortunately deceit rules with CCI
Date: February 29, 2012
To: All Employees
From: Jack Massimino,
Chairman and Chief Executive Officer
Bob Bosic,
EVP Operations
RE: Campus Changes and Reorganization
Over the past 18 months we have made impressive progress in strengthening our company’s operations, allowing us to better serve students and respond to changes in the economy and the regulatory environment. We have taken steps to align spending with a lower student population, reducing annual operating expenses by more than $150 million while improving quality and efficiency. Among several initiatives, we completed the implementation of CampusVue at Everest and WyoTech. This new technology allowed us to reengineer and centralize financial aid processing, which in turn helped us cut bad debt nearly in half. We implemented a new performance evaluation and compensation plan for admissions and student finance personnel. And we continued to refine our default prevention process, which helped us achieve a 2010 two-year cohort default rate of 6.7%, down from nearly 22% the previous year.
Just as we have improved efficiency at the company level, we are working to make sure our campuses operate effectively. We have completed a comprehensive review of the five-year performance of each of our schools in terms of student outcomes and financials. Based on that review, we have already reduced the number of campuses in some markets, including the Northwest region, Chicago area and Ontario, Canada. In other geographies, we’ve continued to expand, adding eight new Region One campuses in the last 18 months. Next fiscal year, we plan to continue adding new campuses – although at a slower pace – and to focus our attention on increasing the student population in our schools.
Today, we are announcing changes that will reduce the overall number of schools and help fill existing schools to capacity, as follows:
· We are putting four of our Everest campuses in California up for sale. Three of them – Hayward, San Jose and San Francisco – are located near Heald College campuses. Heald has a strong reputation in these cities and a much larger student population. The fourth campus, Everest Wilshire, has struggled to build enrollment, especially given our limits on enrolling Ability-to-Benefit students. In addition, the Wilshire campus is located in close proximity to other Everest campuses, including West Los Angeles, Gardena and Alhambra.
It’s important to note that all four of these schools are doing very well in terms of student achievement and regulatory compliance, and we believe their accomplishments will be attractive to a potential buyer.
· We are consolidating two of our Everest Florida campuses that are located near each other - Fort Lauderdale and Pompano. About 130 students are enrolled at Fort Lauderdale, and most will be transferred to the Pompano campus. We also expect a few students to transfer to the Miami campus.
· Finally, we will be teaching out our Everest campuses in Decatur, Georgia and Arlington, Virginia. Both of these campuses have fallen below our student outcome standards.
As sound management practice dictates, we will continue to review the performance of our schools and make adjustments as necessary. But we do not expect additional campus closures, consolidations or sales in the foreseeable future.
In addition to the campus-level changes, we are streamlining our management structure. We are consolidating the number of Everest divisions from four to three. The South Division is being consolidated into the West Division, Central Division and a newly-created East Division. As a result of this change, South Division President Dave Whiteford will be leaving the company. We thank Dave for his 12 years of service to Corinthian and his commitment to students. We wish him well in the future.
Once the consolidation of divisions is complete, Nicole Carnagey will continue to head the West Division; Mark Ferguson will continue to head the Central Division; and Melissa Flores will head the new East Division. A table is attached which shows the new alignment of schools and divisions in detail.
There will be numerous personnel changes associated with these divisional and campus-level changes. In keeping with our company values, we will strive to treat all affected employees fairly. Where possible, employees will be offered positions at Corinthian. For those who will be leaving, severance will be provided in accordance with company policy.
Change has been and will continue to be a constant, but we believe the changes described above will strengthen the company in the coming months and years. As we move forward, we will keep students and employees at the forefront of our decision-making. Thanks for your on-going dedication in helping our students succeed.
Attached is the Divisional Realignment Chart for your reference.